Recent Posts
- Bumpo Seat Recall
- Birth Practices Affect Breastfeeding
- Are you a breastfeeding mom who works?
- Powerhouse Nutrients for Pregnancy and Lactation
- Pool Safety Campaign
Blog Archives
Subscribe to Patty’s Blog (RSS feeds)
Free Get-Acquainted Sample Pack
Contains your choice of valuable guides, coupons, audio workshop, bonuses, and subscription to Birth & Parenting News Monthly E-Newsletter. $67–$231 value, yours free for a limited time. Click here to receive your customized Get-Acquainted Pack. There’s no obligation — just great information!
Stay Connected
Share this page
Doula Business Advisor: Checking Accounts?
If you are a doula operating as a sole proprietor with a Doing Business As (DBA) certificate from your County Clerk’s office, simply take the certificate to your bank to open an account. You have two choices here: setting up a separate business account or adding your DBA to your personal/family account. By adding the DBA to your existing account, you can most efficiently access your money. All deposits go immediately into your personal checking account. A separate business account will require you to transfer funds, after deposit, to the personal account when you want/need to get paid.
If you have formed a corporation of one kind or another, on the other hand, a separate business checking account will be necessary. First, you will need to obtain a federal Employer Identification Number (EIN). This can be done easily online at www.irs.gov. Take the certified Articles of Incorporation from the state and the EIN letter from the IRS with you to the bank.
The primary advantage of a separate business checking account is that the bookkeeping is cleaner. Psychologically, it may be less painful to pay out business-related expenses from a business account than it is from a personal checking account. It is much easier to track what is actually going on with the business if it is separate from your personal finances. You will have income, minus expenses, including taxes that need to be set aside. What’s left over is what you can afford to pay yourself as an “owner’s draw.” I think that the separate account helps independent business owners develop a business mindset. At the end of the year, your tax picture will be much cleaner as well. However, if you are just doing a little bit of doula work, supplementing family income here and there, you might want to forego the complication of a separate account.
The Doula Business Advisor blog is designed to support the establishment and long-term sustainability of private doula businesses. Patty Brennan is the author of The Doula Business Guide: Creating a Successful MotherBaby Business.